Pitney Bowes Inc (PBI)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 1,691,920 | 1,798,020 | 1,892,050 | 2,112,560 | 2,236,080 |
| Total current liabilities | US$ in thousands | 1,730,410 | 1,727,800 | 1,727,940 | 1,870,460 | 1,569,690 |
| Current ratio | 0.98 | 1.04 | 1.09 | 1.13 | 1.42 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $1,691,920K ÷ $1,730,410K
= 0.98
The current ratio for Pitney Bowes, Inc. has been declining over the past five years. The ratio decreased from 1.42 in 2019 to 0.98 in 2023. This downward trend indicates that the company may be facing challenges in meeting its short-term obligations with its current assets. A current ratio below 1.0 suggests that the company may have difficulties in paying off its current liabilities with its current assets alone.
While a current ratio above 1.0 is generally considered healthy, it is important to note that the ideal current ratio varies by industry and company circumstances. A decreasing trend in the current ratio over time may raise concerns about the company's liquidity position and its ability to manage short-term financial obligations effectively. Pitney Bowes, Inc. may need to closely monitor and manage its working capital to address these liquidity challenges.